Forex Avenger Case Study – Part 1
I recently took the very popular Forex Avenger trading system and put it though its paces using a Forex trading system software. I first wanted to prove to myself and my readers that Forex Avenger was a profitable trading system. Then I wanted to see if I could split test the system to make improvements for even more profit. And the results were nothing short of spectacular.
The Advantage Of Forex Testing Software
The problem with testing mechanical Forex trading systems, where you have to trade manually, is the time involved. Doing the testing on a DEMO account in real time takes forever… especially if you want to test for an entire year like I did! So, using a testing software was a great option.
Using the software, I was able to use real, historical Forex data to simulate trading for the entire year of 2008. And here is the great part… then I could test a variation of the trading system for the SAME time period to see which way was better. You just can’t do this with demo trading.
83% Profitable Out Of The Box
The first Forex Avenger test I did was “out of the box”. I traded the system exactly as David Curran taught it for the entire year of 2008. My account grew from $10,000 to over $18,300… for about 83% profit. So, the first test was successful… Forex Avenger made money during the test.
279% Profit In Second Test
In the second test of Forex Avenger I made some slight changes. This is the advantage of trading a system fast using the software… it exposes patterns or variations worth testing. And while the success rate when down from 60% to 49%, the profit went up from 83% to 279%. In dollars, the test account grew from $10,000 to over $27,900. Pretty substantial improvement I would say.
>>> Read Part 2 of Forex Avenger Case Study >>>
